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Binance, the largest crypto exchange globally, has seen a sudden drop in XRP holdings as a total of 25.23 million XRP, or about $13.16 million, has been withdrawn from the exchange. The transfer was made to an undisclosed address, according to Whale Alert.
Alex DovbnyaHistorically, withdrawals from exchanges have been seen as a positive sign. It is often thought that big investors are buying digital assets on these platforms and then moving them to their own wallets for safe storage.
Further investigation into the transaction details shows that a specific address, "rDAE53," initiated the transfer of millions of XRP to another wallet, labeled "rfQ9." This destination address, which currently holds 4.167 million XRP, has been linked to withdrawals from Binance earlier this year.
XRP price outlook
Moreover, the timing of this substantial XRP withdrawal coincides with notable price action for the cryptocurrency.
Following a decline since May 21, XRP appears to have stabilized around $0.51 per token, a crucial support level historically associated with price upswings. It has been observed that maintaining this price level has historically led to price growth, whereas breaching it resulted in significant declines.
XRP enthusiasts should watch closely to see if this withdrawal is a sign of accumulating investors betting on a future price surge, or if it could precede another downward trend for the popular cryptocurrency.
Tomiwabold Olajide
Dan Burgin
Alex Dovbnya
Vladislav Sopov